RBC Capital Raises Rackspace Technology Price Target on AMD Partnership

RBC Capital analysts raised their price target for Rackspace Technology (NASDAQ:RXT) after the company reported strong fiscal Q1 2026 earnings, driven by its partnership with AMD.

Rating Change

RBC Capital raised its price target for RXT to a new level (not yet disclosed) while maintaining a Buy rating. The stock has surged over 569% in the past six months.

Analyst Rationale

The analyst believes the AMD partnership has strengthened Rackspace's offerings in agentic AI, making it one of the best-performing stocks in the sector. Strong Q1 revenue of $678.1 million also boosted confidence in the company's growth trajectory.

Context

Q1 2026 revenue of $678.1 million exceeded analyst expectations. The AMD partnership gives Rackspace a competitive edge in AI solutions. However, competition in the cloud services market remains intense.

What We Conclude

The price target increase reflects analyst optimism about Rackspace's prospects, but investors should consider the stock's high volatility and sector risks.